Brazil will bar fintechs from taking deposits

BRASILIA/SAO PAULO (Reuters) - The Brazilian central bank is proposing barring financial technology companies from taking deposit from borrowers, as part of new rules to govern the fast-growing industry in Latin America's largest economy.

The framework of new rules for the so-called fintechs, which will be in public hearings for the next 75 days, will not require congressional approval, central bank director Otávio Damaso said on Wednesday. Commercial banks will also be allowed to create their own fintech platforms once the rules are approved, Damaso said.